EADS Sees No Room for Error on A350

By

David Pearson And

Daniel Michaels

Updated Feb. 27, 2013 3:18 p.m. ET

BERLIN—European Aeronautic Defence & Space Co. said it has balked at the terms of a proposed €600 million ($784 million) loan from the German government to fund its new Airbus A350 jetliner, while warning it has no margin for error in keeping the multibillion-euro program on track.

"If we were willing to fulfill all the wishes of the government, we could have the €600 million tomorrow," Chief Executive Tom Enders said in...